Industrial equipment maker Robbins & Myers Inc. (RBN) Saturday reported a lower first-quarter profit, hurt by charges related to its proposed merger with National Oilwell Varco Inc. (NOV). Robbins' sales for the period meanwhile increased from the prior year and topped Street estimates, on growth at both Energy Services and Process & Flow Control segments.
Robbins makes engineered, application-critical equipment and systems. The company reported first-quarter sales of $257 million, compared with $237 million in the prior year.
Analysts on consensus estimated sales of $248.62 million for the quarter.
"Both of our business segments continued to perform well. The Energy Services segment continues to be impacted by a reduction in U.S. rig count and lower drilling activity, but still demonstrated excellent performance. In the Process & Flow Control segment, we experienced stronger demand in the chemical and industrial markets," said CEO Peter Wallace.
The Willis, Texas-based company reported quarterly net income of $32 million or $0.76 per share, compared with $35 million or $0.77 per share a year ago.
Analysts on consensus estimated earnings of $0.87 per share for the quarter. Analysts' estimates typically exclude special items.
Results for the reporting quarter included $0.05 for costs related to Robbins' pending merger with National Oilwell Varco Inc.
The company reported orders during the quarter totaling $246 million, down 2 percent from a year ago excluding the impact of currency translation. Quarterly backlog increased to $298 million from $260 million last year.
Robbins has announced a regular quarterly cash dividend of $0.05 per share, payable on February 8 to shareholders of record as of January 7.
Robbins also updated on its proposed acquisition by National Oilwell Varco Inc. of all outstanding shares of Robbins for $60.00 per share in cash. Robbins said the two companies have entered into a timing agreement with the U.S. Department of Justice and will provide at least 30 days notice to the DOJ prior to consummating the merger. Robbins said that without DOJ consent, the merger cannot close prior to February 18, 2013.
Robbins has scheduled its special meeting of shareholders to consider approval of the merger for December 27. As of December 22, 99.8 percent of votes cast to date have voted in favor of the merger. Nonetheless, shareholders have a right to change or rescind votes before the special meeting.
Robbins closed Friday at $59.50, up 0.12%, on a volume of 0.7 million shares on the NYSE.
National Oilwell Varco closed Friday at $68.33, down 1.74%, on a volume of 4.6 million shares.
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